I'm not sure if the ADU would give instant equity above the initial capital investment. 

I currently have a hard money loan and all my capital is tied up in the properties.

That would KILL your IRA and create huge tax penalties.There is a retirement plan based structure know as a Rollover as Business Startup that allows you to take existing retirement funds and use them to capitalize a business in which you are directly involved. 

@Zev Dobuler the distance between locations almost dictate multiple attorneys even within a national firm.

You owe capital gains taxes on $80,000.

When he sells me the property he pays capital gains tax.

My name is Zasha and interested in flipping a couple homes to build more capital to buy homes outright (refi in 6 months) then buy-and-hold properties but also wondering if I should buy an owner occupied home first.

So I have since abandoned this unwise investment of my limited capital and time. 

Between the mountains and National Forest, land is scarce so prices are high.Asking price of $725,000.

Ultimately I would like to get into rental properties but I'm thinking that Wholesaling could be a good place to start to build up capital before buying a rental I want to hold for a long time.